USD/CAD Forecast February 8, 2016, Technical Analysis

The USD/CAD pair broke higher during the course of the day on Friday, clearing the top of the hammer from Thursday. This is a very bullish sign, and the fact that it was at the 50% Fibonacci retracement level from the longer-term uptrend it certainly helps as well. The US dollar of course is going to do better than the Canadian dollar in an environment that sees quite a bit of weakness in the oil markets, and we think this is finally coming back to this currency pair. Given enough time, we believe that the market will break above the 1.41 level, and then go much higher than that.